Premier Inn Hotel: An Analysis of Structure, SWOT, and PESTLE Factors

This case study provides an in-depth analysis of Premier Inn Hotel, a major UK hotel chain, focusing on its organizational structure and business environment. It examines the hotel's tall organizational structure, highlighting the roles of general managers, front office staff, housekeeping, engineering, security, and human resources in ensuring customer satisfaction and operational efficiency. The study employs SWOT analysis to assess Premier Inn's strengths (high occupancy rate, strong UK presence), weaknesses (limited global presence, hygiene issues), opportunities (market expansion, infrastructure upgrades), and threats (competition, legal challenges, pandemic impacts). Additionally, a PESTLE analysis explores the political, economic, social, technological, legal, and environmental factors influencing the hotel's operations, including government policies, economic fluctuations, social trends, technological advancements, legal compliance, and environmental sustainability initiatives like the 'good together program.' The report concludes that Premier Inn's strong organizational structure and proactive approach to business environment analysis contribute to its competitiveness in the hospitality and tourism industry.

Case study

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organizational Structure of Premier Inn Hotel............................................................................1
Business Environment Analysis of Premier Inn Hotel................................................................2
SWOT analysis of Premier Inn Hotel..........................................................................................2
PESTLE analysis of Premier Inn Hotel.......................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Premier Inn Hotel is one of the largest hotel of UK and it is also a British started hotel chain. It
was founded in 1987 by Whitbread. The headquarter of the premier Inn Hotel is in Dunstable,
England, UK. The company was established by Whitbread named as travel Inn in 1987 , in order
to compete with Travelodge Whitbread establish Premier Lodge in 2004 and in 2007 they
combined the both an make it “premier Inn”( Bower, 2018).In this report we will study about the
organizational structure and business environmental analysis of Premier Inn Hotel. The report
will also highlight the SWOT and PESTLE analysis of the hotel.
MAIN BODY
Organizational Structure of Premier Inn Hotel
The organizational structure of a hotel is defined as the comprehensive plan set by the owner of
the hotel in order to define the responsibilities and departmental activities of the hotel. The
organizational structure of the hotel cover every aspect from front desk, operational management
to human resource management. The aim of Premier Inn hotel is to ensure maximum revenue
and profit from each room and café and bar on regular basis.it would be easier for the Premier
Inn hotel to have a good organizational structure. In the Premier Inn hotel there are many
organizational structure for making the customer satisfied by their service. The first one is the
general manager, general manager is the leader of the team and have the power of taking all the
decisions of the team. Assistant general manager is the subordinate of the general manager and
helps in administrating the rules of the hotel (Darvishmotevali, Altinay, and Köseoglu, 2020).
Front office is the front face of the hotel and helps in providing all the services to the customer
like booking rooms and check out process. Housekeeping staffs are responsible for the
cleanliness of the hotel and helps in keeping the hotel clean from every corner. Engineering
department is responsible for all the maintenance and helps in solving all the defects on the
organizational structure of the Premier Inn hotel. The security department of the premier Inn
Hotel plays a very important role in the organizational structure and helps in providing security
and safety to the staff and customers as well. Human resource department is also one of the most
crucial organizational structure of the hotel as it helps in managing and handling the staff like
recruiting, provide training, provide promotions and compensation benefits. Therefore the
premier Inn Hotel have a very good and strong organizational structure as it helps in making the
organization more productive and efficient(Datta, and Singh, 2018).
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Business Environment Analysis of Premier Inn Hotel
The business environmental analysis helps in understanding the surrounding in which the
business operations and functions are operated. The business environmental analysis helps in
reflecting the operations of s business and the business is highly dependent on the environment
of the hotel. The analysis of business environment can be done by understanding the concept of
SWOT and PESTLE analysis of the Premier Inn Hotel (Bodolica, Spraggon, and Shahid, 2018).
SWOT analysis of Premier Inn Hotel
The business environmental analysis include the internal and external factors that affect the
business directly or indirectly. For understanding the internal factors of the Premier Inn Hotel
SWOT analysis will help in determining the strength, weakness, opportunities and threats factors
of Premier Inn hotel.
Strengths-There are many strengths of Premier Inn hotel some of them are as follows. The first
one is occupancy rate, as the hotel have an occupancy rate of 76.3% which is making the hotel
more efficient. It serves over five million customers and have 800 hotels in UK and have a
strong presence in the UK. The location of the hotel is very convenient for the customers as the
hotels are located near airports and near tourist’s areas (George, 2021). Premier Inn hotel have a
very good brand image and have kid friendly and bike friendly image couples with free WIFI
which is available 24*7.
Weaknesses-Limited global presence is one of the biggest weakness faced by Premier Inn hotel.
Another issue faced by Premier Inn hotel was of refunding the amount back to the customers
who have booked the hotel pre lockdown and have a problem of hygiene as well as they are
using the same towels of the guest for cleaning the washrooms and toilets.
Opportunities-The main opportunity of the Premier Inn Hotel is exploring into new markets.
Exploring new countries and regions is worth for the hotel to increase the growth and revenue
rate of the hotel. In Germany there are 28 Premier Inn hotels and there is an opportunity for the
hotel to expand more in the country. The hotel can use new décor for the infrastructure and can
change the look of the hotel.
Threats-The main competitors of Premier Inn hotel are Holiday Inn, Ibis which provide the
same type of services with same type of budget (Astawa, and et.al, 2022). There are some legal
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threats also which are faced by Premier Inn hotel because of the refund issue and one of the
major threat of the hotel was the lockdown during pandemic.
PESTLE analysis of Premier Inn Hotel
With the help of PESTLE analysis the external factors of the Premier Inn hotel cab be
determined.it helps in analysing the environmental analysis of the business. The PESTLE
analysis include the political, economic, social, technological, legal and economic factors faced
by the hotel.
Political Factors-the political factors or government rules and regulations is one of the major
part which influence the hotel in some way. After having a decrease in global economic there
are some policies issued by government for boosting the economic growth of the Premier Inn
hotel. Hotel industry always have a fear of presidential law as the laws made by the previous
government can be changed by the new president. Tax reforms helps the hotel as they can pay
reduced tax and can invest the saved amount for the development of more rooms.
Economic Factors-For the global investors hotel industry is one of the largest economic
investment industry of the world. Due to the fluctuations in the economic rate the desirability of
the hotel gets impacted (Kigera, and Ogutu, 2021). The low interest rates show the decrease in
debt and savings for boosting the spending of the customer which may assist hotels like Premier
Inn.
Social factors-One of the biggest competitor of the hotel industry is Airbnb because it provides
a wide range of rooms with effective services. Premier Inn Hotel is also working for the
communities and offering employment to lot of people and also contributing many charity or
societies.
Technological factors-It is very important for Premier Inn Hotel to take the advantage of
increasing technology and adapting those technologies in the hotel. The people can be targeted
easily and are cost efficiently in the social media, internet browsing and communities.one of the
possible threat in the increasing use of existing communication reduce the need for business
travel.
Legal factors-having good legal factors in the hotel gives a good reputation to the hotel and it is
very important for Premier Inn hotel to have a very strong Legal team for handling all the legal
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actions. If the hotel is situated near to any criminal place or an area having high crime rates then
it decreases the reputation of the hotel therefore it should be managed by the team.
Environmental factors-The effect of environment on Premier Inn Hotel is very significant. One
of the program started by Premier Inn hotel “good together program” helps in making the hotel
ecologically sustainable. For decreasing the wastage of natural resources the hotel have installed
the energy saving lights and water efficient showers (Buchanan, and Huczynski, 2019). The firm
have also reduced the use of paper and started using online forms and they also insist customers
or guest to fill one form for environmental factor and make them aware about it.
CONCLUSION
From the above report it can be concluded that Premier Inn hotel is one of the largest hotel of
UK and provide a very significant service to their customers. The organizational structure of the
Premier Inn Hotel is tall structure in which there are multiple hierarchies which makes the
system and management well enough for performing their services. The business environmental
analysis has been explained by the help of internal and external factors of the Hotel which
includes the strength, weakness, opportunities and threats of the Premier Inn hotel. Similarly the
external factors have been explained in terms of political, economic, social, technological, legal
and economic factors of the hotel. The Hotel is contributing very much in making the firm more
profitable and productive. There are many programs and trainings that have been conducted by
the hotel in order to understand the customer needs and requirements. By having all these factors
and qualities the Premier Inn Hotel is making a high competition in the hospitality and industry
tourism.
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REFERENCES
Books and Journals
Bower, J., 2018. Whitbread: Routines and resource building on the path from brewer to
retailer. Management & Organizational History, 13(1), pp.1-23.
Darvishmotevali, M., Altinay, L. and Köseoglu, M.A., 2020. The link between environmental
uncertainty, organizational agility, and organizational creativity in the hotel
industry. International journal of hospitality management, 87, p.102499.
Datta, A. and Singh, R., 2018. Determining the dimensions of organizational climate perceived
by the hotel employees. Journal of Hospitality and Tourism Management, 36, pp.40-48.
Bodolica, V., Spraggon, M. and Shahid, A., 2018. Strategic adaptation to environmental jolts: an
analysis of corporate resilience in the property development sector in Dubai. Middle East
Journal of Management, 5(1), pp.1-20.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Astawa, I.K., and et.al, 2022, March. Green Hotel Promotion Strategy in Bali: A Study Using
SWOT Analysis. In International Conference on Applied Science and Technology on Social
Science 2021 (iCAST-SS 2021) (pp. 460-466). Atlantis Press.
Kigera, P.M. and Ogutu, M., 2021. Influence of politics on performance of international hotels
based in Nairobi, Kenya. International Academic Journal of Human Resource and Business
Administration, 3(10), pp.346-360.
Buchanan, D.A. and Huczynski, A.A., 2019. Organizational behaviour. Pearson UK.
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